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HMRC internal manual

VAT Clothing


The legal basis for the zero-rating of young children’s clothing and footwear is VAT Act 1994, schedule 8 (zero rating), Group 16 (clothing and footwear), Item 1.

The authority for UK law stems from Article 28 of the EC 6th Directive which has now been superseded by the Common VAT directive, 2006/112. Under this, the UK retains the right to zero rate any provisions in force on 1 January 1991.

The requirements of the law as laid down in Item 1 are relatively simple - to be eligible for zero-rating under the Item, an article must:

  • be designed as clothing or footwear;
  • not be made of fur, except for articles listed in note (2) to Group 16;
  • be intended for young children; and
  • be suitable only for young children.